A phase diagram analysis on “The Environment and Directed Technical Change

Kenichiro Ikeshita (), Tamotsu Nakamura () and Keisuke Osumi ()
Additional contact information
Kenichiro Ikeshita: Kanazawa University
Tamotsu Nakamura: Kobe University
Keisuke Osumi: Fukuoka Women''s University

Economics Bulletin, 2015, vol. 35, issue 2, 968-977

Abstract: Analyzing a dynamic general equilibrium model that incorporates endogenous and directed technical change and environmental constraints, Acemoglu et al. (2012) present thought-provoking discussions on green growth and environmental disaster. For the clarity of argument, they place a restriction on the initial technology levels (Assumption 1). By means of the phase diagram, this note shows that without the assumption the same arguments can be extended. In other words, their results remain valid in the wide range of the initial technology levels. Also, it is shown that there exists a threshold of the relative technology level, which determines the future of the environment: disaster or restoration.

Keywords: Directed technical change; Environmental disaster; Environmental restoration; Knife-edge dynamics (search for similar items in EconPapers)
JEL-codes: O3 Q3 (search for similar items in EconPapers)
Date: 2015-04-22
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I2-P99.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-14-00976

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().